Challenger Energy Group PLC (AIM:CEG, OTCQB:BSHPF) earlier this week outlined key developments in its offshore exploration portfolio and strategic expansion into the North American capital markets.
Offshore Uruguay, where Challenger holds two licenses - OFF-1 and OFF-3 – is seen as a rapidly emerging exploration hotspot along the Atlantic margin.
Challenger Energy told investors that the OFF-1 license had already been farmed out to Chevron, which now holds a 60% interest.
Chevron is now progressing a significant work programme on the block through 2024 and into 2025.
Chief executive Eytan Uliel joined the Proactive studio to tell us all about the opportunity.
Proactive: Joining me now is Eytan Uliel. He is the CEO of Challenger Energy Group. Eytan, great to see you.
The company is now trading on the OTCQB market—congratulations on that. We’ll talk more about that in a moment. First, can you give everyone a bit of background on the company?
Eytan Uliel: For those who don't know Challenger Energy, we are a UK company listed on the AIM in London, and now also listed, as you mentioned, on the OTCQB.
We are in the oil and gas exploration business, specializing in the Atlantic margin and the frontier basins of the Atlantic margin.
Right now, our entire business focus is on offshore exploration in Uruguay, which has become one of the really emerging global exploration hotspots.
We’ve got a very exciting position there, and we’re focused on progressing those projects quickly and deriving value from them.
Proactive: What stage are you at with that?
Eytan Uliel: We have two licenses—OFF-1 and OFF-3. For OFF-1, we’ve completed an initial technical work programme and farmed it out.
We did a partnership agreement with Chevron, who now holds a 60% interest and are driving the project forward with a large work programme planned for the rest of this year and into next.
With OFF-3, we still hold 100%. We're in the middle of a comprehensive technical work programme, which we expect to finish by mid-year. Similar to OFF-1, we’ll then look to find a partner—ideally someone of Chevron’s caliber.
Proactive: Uruguay seems busy now?
Eytan Uliel: Yes, Uruguay is now 100% licensed. All licenses are held by majors like Shell, Apache, and YPF. We are the only junior company with a large position there in what’s become a very exciting frontier.
Proactive: Is that North American interest why you listed on the OTCQB?
Eytan Uliel: Absolutely. Our projects are in Latin America, and the investor base that understands oil and gas is in North America. Most service companies are in Houston, and there’s a developed investor universe.
We’ve seen growing interest from people in North America, and the OTC listing makes it easier for them to buy shares - virtually through an app if they want.
Proactive: The ticker symbol is BSHPF. Are you considering putting boots on the ground in the U.S.?
Eytan Uliel: Not in terms of a permanent presence, but I’m currently at an investor conference in the U.S., meeting with anyone interested. We’ll be doing a few roadshows in Canada and North America over the next year.
It’s a big push for us to engage with that market. We’ve got strong shareholder support in the UK, and now we want to build that in North America as well.
Proactive: Sounds exciting. Thanks so much, and congratulations on the progress. We look forward to speaking again.